Reporting Harassment and Threats from Lending Companies in the Philippines

A practical legal guide for borrowers, advocates, and practitioners

1. Why This Matters

High‑interest “payday” lenders, online lending apps, micro‑finance institutions, and even some banks have come under scrutiny for aggressive—and often illegal—collection tactics. Borrowers report daily phone calls to relatives, social‑media shaming, threats of arrest, and doxxing. These practices violate multiple Philippine laws and regulations. Knowing where, how, and to whom you can complain is the first step toward stopping the abuse and, in serious cases, holding perpetrators criminally liable.

2. Key Statutes and Regulations

Law / Issuance	Core Protection Relevant to Harassment & Threats
Republic Act No. 11765 (Financial Products and Services Consumer Protection Act, 2022)	Codifies consumers’ right to fair, honest, and respectful treatment by all financial service providers (FSPs). Empowers the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), the Insurance Commission, and the Cooperative Development Authority to sanction abusive debt‑collection acts.
Republic Act No. 9474 (Lending Company Regulation Act, 2007) & SEC Memorandum Circular No. 18‑2019	Require lending/financing companies to obtain a certificate of authority and prohibit “unfair collection practices,” including threats, obscene language, and contacting third parties except to determine a borrower’s location.
BSP Circular No. 1160 (2023) & older Circular No. 1039**	Impose parallel “fair debt‑collection” standards on BSP‑supervised financial institutions (banks, quasi‑banks, e‑money issuers).
Data Privacy Act (RA 10173) & NPC Circular 20‑01	Outlaws the non‑consensual disclosure or over‑collection of personal data—common when collection agents spam a borrower’s entire contact list.
Cybercrime Prevention Act (RA 10175)	Elevates slander, libel, threats, and illegal access committed online to qualified offenses with heavier penalties.
Revised Penal Code Arts. 282 (Grave Threats), 287 (Unjust Vexation), 290‑292 (Intrusion on Privacy of Communication)	Provide traditional criminal sanctions independent of the special laws above.
Barangay Justice System (RA 7160, ch. VII)	Enables amicable settlement or issuance of a Barangay Protection Order (BPO) against continued harassment.

3. What Constitutes Illegal Collection Conduct?

SEC and BSP guidelines converge on several red‑line behaviors:

Threats of violence, arrest, or criminal prosecution—collectors cannot claim you will be jailed merely for non‑payment of a civil debt.
Use of profane, obscene, or humiliating language.
Calls or visits outside 8 a.m. – 9 p.m., or after a written request to cease.
Contacting employers, co‑workers, or relatives except to obtain your whereabouts, and even then only once.
Public shaming through social‑media posts, group chats, or mass texts.
Disclosing or harvesting contact lists without valid, freely given, and informed consent (Data Privacy Act).

Any of the above can ground an administrative complaint; several also constitute criminal offenses (grave threats, libel, unjust vexation, cyber‑libel, or data‑privacy breaches).

4. Gathering Evidence

“If it isn’t documented, it didn’t happen.”

Collect and preserve:

Screenshots of text messages, chat threads, public posts, and caller‑ID logs (include date/time stamps).
Audio recordings of calls (allowed under the “one‑party consent” rule if you are a party to the call).
Sworn statements from relatives or co‑workers who received calls or messages.
App permissions pages and privacy‑policy PDFs showing how the lender obtained your contacts.
Proof of loan terms and payments (promissory notes, receipts, bank statements) to rebut inflated claims.

5. Where and How to File Complaints

5.1 Securities and Exchange Commission (SEC) — Lending & Financing Companies

Prepare an affidavit‑complaint detailing dates, acts, and violated rules (MC 18‑2019).
Attach your evidence bundle.
File via e‑mail (cgfd@sec.gov.ph) or in person at the SEC’s Corporate Governance and Finance Department.
Outcome: SEC may impose fines, suspend or revoke the company’s Certificate of Authority, and order return of collected payments obtained through intimidation.

5.2 Bangko Sentral ng Pilipinas (BSP) — Banks & Other BSP‑Supervised FSPs

Use the BSP Consumer Assistance Mechanism (CAM) Form (/consumeraffairs@bsp.gov.ph).
BSP can order restitution, administrative sanctions, and corrective action plans.

5.3 National Privacy Commission (NPC)

For “contact‑list harvesting,” doxxing, or bulk SMS blasts, lodge a Data Privacy Complaint on the NPC portal.
NPC can fine ₱500 k–₱5 M per violation and issue Cease‑and‑Desist Orders.

5.4 Philippine National Police (PNP) — Anti‑Cybercrime Group (ACG) / Criminal Investigation and Detection Group (CIDG)

File a criminal complaint‑affidavit citing either the Revised Penal Code provisions or RA 10175 for cyber‑offenses.
The ACG can apply for a warrant to disclose computer data to trace anonymous numbers or Facebook accounts.

5.5 Barangay or City Prosecutor

Lupon Tagapamayapa: Expedites settlement and can issue a BPO within 24 hours.
Provincial/City Prosecutor: For grave threats or libel requiring preliminary investigation.

5.6 Civil Courts (Small Claims or Regular Trial Court)

Sue for damages (moral, exemplary) under Articles 19–21 of the Civil Code (“abuse of rights”) or specific Torts.

6. Practical Workflow Checklist

Send a “Cease and Desist” Letter to the lender demanding all contact go through you in writing.
Document every subsequent incident—time, platform, summary, evidence saved.
Escalate to the regulator (SEC or BSP) within 15 days if harassment continues.
Parallel filing: If data privacy is involved, file with NPC; if threats or libel exist, file with PNP‑ACG or Prosecutor.
Keep receipts of all filings; regulators often cross‑endorse cases to each other.
Attend hearings or mediation; non‑appearance of the lender can speed up administrative penalties.
Enforce orders (e.g., SEC suspension) by presenting them to app‑store operators or telcos to cut off the lender’s channels.

7. Defenses and Counter‑Moves Lenders May Raise

Lender’s Typical Argument	Rebuttal Strategy
“Borrower consented in the app’s Terms of Service.”	Consent obtained through coercion or buried clauses is invalid under Data Privacy Act & SC rulings (e.g., NPC vs. Cebuana).
“Only friendly reminders; no threats.”	Present precise language: “We will send police to your office” shows intent to intimidate.
“We called the borrower’s mother just once.”	If the call disclosed your debt, that alone breaches MC 18‑2019 §4(c).
“Cyber‑libel needs proof of malice.”	Malice is presumed in defamatory statements per se imputing a crime or dishonesty.

8. Recent Enforcement Trends (2024–2025 Snapshot)

SEC closed 70 online lending apps in 2024 alone for harassment complaints.
NPC fined an app‑based lender ₱25 M for scraping borrowers’ contacts and blasting mass texts.
First cyber‑libel conviction against collection agents was handed down by a Pasig RTC in April 2025 (People v. Rodriguez).
Google Play now requires Philippine lending apps to present proof of SEC registration before listing (effective March 2024).

9. Frequently Asked Questions

Q1: Can I record calls without telling the collector?

Yes. Philippine jurisprudence allows a party to a private communication to record it without violating the Anti‑Wiretapping Law (RA 4200).

Q2: Will I still have to pay my loan after filing a complaint?

Filing does not erase the debt. It only stops abusive collection. Negotiate a payment plan or contest unlawful interest in a separate civil action.

Q3: What if the collector is overseas?

Report to the National Telecommunications Commission (NTC) for SMS spoofing and coordinate with the PNP‑ACG. International mutual legal‑assistance treaties can compel foreign platforms to cooperate.

10. Conclusion

Harassment and threats are never permissible tools of debt collection in the Philippines. A robust mesh of consumer‑protection, privacy, and criminal laws—enforced by the SEC, BSP, NPC, PNP, and the courts—gives borrowers multiple avenues of redress. The keys are documentation, prompt reporting, and persistence in following through each stage of the complaint process.

Quick‑Reference Hotlines • SEC CGFD: (02) 8818‑0742 • BSP CAM: (02) 8708‑7087 • NPC Complaints: privacy.gov.ph • PNP‑ACG: (02) 8414‑1560 / 0998‑598‑8116

Stay informed, know your rights, and do not tolerate intimidation—legal remedies are on your side.